Street View: T-Mobile an industry leader but overvalued

T-Mobile TMUS.O added fewer wireless subscribers in the first quarter than Wall Street had expected.

Shares of carrier were down 5.3% premarket at $248.13

Nineteen of the 30 brokerages covering stock have a 'buy' or 'strong buy' rating, 10 'hold' and 1 'sell'; median PT is at $275, according to data compiled by LSEG

INDUSTRY LEADER BUT OVERVALUED

RBC Capital Markets ("sector perform," PT: $265) expects company's increasing presence in the business market to support its subscriber targets despite macro headwinds

Brokerage says stock's valuation is above U.S. peers when comparing FY2026 enterprise value to core earnings

Stock's next 12 months enterprise value is 11.09x its core earnings compared with an industry median of 6.56x, according to data compiled by LSEG

Moffett Nathanson ("neutral," PT: $220), says stock is seen as insulated from tariffs and consequent macro headwinds but adds that TMUS is overvalued

Brokerage says churn in postpaid phone subscribers is an industry-wide trend

Oppenheimer ("outperform," PT: $300), says stock is brokerage's "preferred pick" in the wireless telecom sector

"We believe the key to stock's performance is company's 5G network and now stock buybacks" - brokerage

NewStreet Research ("buy," PT: $308) says, "We continue to think T-Mobile is the best positioned in a market with rising competition given lower average revenue per unit (ARPU), higher capacity, and great momentum"